Questions from Corporate Finance

Q: a. What can you conclude if a firm’s planned sales growth

a. What can you conclude if a firm’s planned sales growth exceeds its break‐even sales growth rate? b. What can you conclude if a firm’s planned sales growth is less than its break‐even sales growth r...

Q: Explain the difference between the receivables turnover ratio and the average collection

Explain the difference between the receivables turnover ratio and the average collection period (ACP).

Q: What are the drawbacks to using the turnover ratio to measure inventory

What are the drawbacks to using the turnover ratio to measure inventory policy?

Q: Discuss measures businesses can implement to improve working capital management.

Discuss measures businesses can implement to improve working capital management.

Q: Explain the difference between the operating cycle (OC) and the

Explain the difference between the operating cycle (OC) and the cash conversion cycle (CCC).

Q: Explain the difference between the quick ratio and the current ratio.

Explain the difference between the quick ratio and the current ratio.

Q: Great Northern Manufacturing presently has net working capital of $100,

Great Northern Manufacturing presently has net working capital of $100,000 and sales of $125,000. It is considering entering into a new project that would increase next year’s sales by $15,000. The pr...

Q: Manitoba Services is considering undertaking a new order that would cause its

Manitoba Services is considering undertaking a new order that would cause its average days of revenues in payables (ADRP) to decrease from 58 days to 48 days, while its average collection period (ACP)...

Q: Determine the operating cycle and cash conversion cycle for a company with

Determine the operating cycle and cash conversion cycle for a company with inventory turnover of 6.25 times per year, receivables turnover of 8 times per year, and an average days of revenues in payab...

Q: Use the information in the financial statements below to answer the following

Use the information in the financial statements below to answer the following. a. Calculate the current ratio, quick ratio, and net working capital. b. Calculate the inventory turnover (using revenues...